eric chang director of incubation microsoft advanced technology center beijing, china
TRANSCRIPT
Eric ChangDirector of IncubationMicrosoft Advanced Technology CenterBeijing, China
UrbanHousehold : 182m
People : 543m
Total ChinaHousehold : 368m
People : 1298m
Source: China National Bureau of Statistics, & Gallup Poll, Dec-2004, inspired by Sen. John Edwards’ “Two Americas”
Urban, Everyone elseHousehold : 160m
People : 494m
RuralHousehold : 186m
People : 755m
Urban, Top 10 citiesHousehold : 22m
People : 49m
• The “Glam” China• Top 10 cities – with Beijing,
Shanghai and Guangzhou as Top 3
• Annual HH income in Top 10 = US$4k, in Top 3 = US$5.5k
• Symbolized by the Pudong skyline
• The China that got left behind
• Annual HH income = US$1k
• Living off the land, not the global economy
• Symbolized by the peasant
• The “Middle” China,• The “real “ emerging market of
China• Annual HH income = US$3k• Symbolized by the moped
Even within urban, top 10% households make 8X that of
bottom 10%
Income differences between urban vs. rural
1.3
1.9
2.5
3.3
4.2
5.5
9.1
0 2 4 6 8 10
Bottom 10%
10-20%
20-40%
40-60%
60-80%
80-90%
Top 10%
Source: Gallup Poll, Dec-2004
USD 000
Dramatic increase in electronics ownership between 1999 and
2004
…but significant gap between large cities, small towns and
rural areas in 2004
Source: Gallup Poll, Dec-2004
% ownership by
household
% ownership by household, 2004
Recently concluded qualitative research in Henan Province, Middle China; tested reaction to:Fone+ as a PC alternativeVarious applications on Fone+Price points, hardware brands
Participants all made between US$100 and US $250 per month, PC literate, owned mobile phones but did not have a PC at home
Different age and life profilesYoung Males 18 – 24Young Females 18– 24Single 24 – 35Parents 35 – 45
Different geographic areas within HenanLarge metropolitan area (ZhengZhou)Mid-sized, emerging town (XuChang)Small town, semi-rural (Hui County)
Also conducted quantitative survey of 1146 people across non-rural China (executed by McKinsey)
A sea of mopeds in front of town’s only non-Chinese restaurant
But clearly, there is a new bourgeois in town
Pop:~½ mil
HH Income:~ US$200 per month
1/3 billion Chinese live in towns like Hui County
Top scenarios fully leverage the TV
% that selected the responses below
23%
22%
16%
7%8%6%
3%
15%
Q: “If you could select just one thing, what would you say appeals to you the most about this idea?
Source: Quantitative Survey of 1146 people aged 13 to 54 across non-rural China
Eric Chang
© 2007 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after
the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.
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